The residential real estate market in New York City came back to life in the third quarter of 2009. Sales prices and transaction volume reversed the trend of falling quarter on quarter figures in many markets. These quarter to quar- ter market improvements were due to factors other than the typical summer boost in activity. These improved market indicators are repre- sented in much of the borough-wide data, and equally apparent when analyzing the neighbor- hoods by property class. Nevertheless, it should be stated that the recovery in the resi- dential real estate market in New York City is fragile and needs to continue through the next two quarters before we can say with irrefutable confidence that a recovery is underway. Analyzing the year to year changes, it is clear that the market is not back to the high velocity of transactions and sales prices of the pre-finan- cial crisis period which established a record for the number of sales and for the average sales price.